Month: May 2018

Maryland Updates its State Estate Tax

For years, Maryland has imposed a state-specific estate tax on assets transferred from a recently deceased person to anyone other than his or her spouse. In 2017, the tax was assessed on assets with a total value greater than $3,000,000. For deaths in 2018, the tax is assessed on assets greater than $4,000,000.

During the 2018 legislative session, the Maryland estate law was updated so that those dying in 2019 can transfer, tax-free, assets with a value of up to $5,000,000 outside of marriage. The $5,000,000 limit does not increase or decrease going forward, nor does it adjust with inflation. The tax is around 15% and is only imposed on assets over the $5,000,000 threshold. In other words, for a transfer of $6,000,000, Maryland would impose a tax of approximately $150,000.

As has always been the case, spouses may still transfer unlimited sums to each other, at any time including death, without incurring a tax.